HomeNewsBinance Nears Regulatory Exit in the Philippines as SEC Tightens Oversight

Binance Nears Regulatory Exit in the Philippines as SEC Tightens Oversight

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  • The Philippine Securities and Exchange Commission (SEC) announces a three-month timeline for banning Binance, with potential for extension.
  • SEC Commissioner Kelvin Lee highlights the importance of regulatory compliance and consumer protection in the crypto industry.

Binance’s Regulatory Hurdle in the Philippines

The Philippine Securities and Exchange Commission (SEC) has recently set a definitive timeline for the potential ban on Binance and other unregulated cryptocurrency exchanges operating in the country. SEC Commissioner Kelvin Lee, during a panel discussion, specified that the ban will be effective three months from the advisory’s issuance on November 29. This decision comes amid the SEC’s growing scrutiny of the cryptocurrency sector and its commitment to enforcing regulatory standards.

Commissioner Lee indicated that the timeline could be extended based on received feedback. However, he noted that the initial timeline was only one month, showing the SEC’s willingness to adapt to feedback and current market conditions. This extension is also seen as a move to alleviate the impact on Filipino investors during the festive Christmas season.

Regulatory Compliance and Consumer Protection

Addressing the criticism surrounding Binance’s potential ban, Commissioner Lee pointed out that the cost-effectiveness of the exchange stems from its failure to comply with local regulations. He stressed that while Binance might offer cheaper services, it does so at the cost of bypassing the legal obligations and compliance costs that registered entities in the Philippines bear. The SEC’s priority remains investor protection and ensuring accountability among crypto exchanges operating within the country.

In terms of upcoming crypto regulations, Commissioner Lee mentioned the transition from public consultation to expert reviews on the draft framework. The aim is to address any regulatory overlaps and ensure comprehensive guidelines are in place. He emphasized the SEC’s focus on collaborating with virtual asset service providers (VASPs) and the importance of investing in registered entities for consumer protection.

Contextual Backdrop of Binance’s Challenges

The SEC’s decision comes in the backdrop of significant findings that revealed Binance’s involvement in unlawful securities offerings within the Philippines. Under local regulations, all securities and their issuance prices must be registered with the SEC, a mandate that applies to both domestic corporations and foreign entities like Binance. This development follows closely after the US Department of Justice’s lawsuit against Binance, further complicating the exchange’s regulatory landscape globally.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628